Mercedes Benz Has Atypical Competitor In India, Claims Company's Marketing Head

Mercedes Marketing head said that the luxury car market was deeply impacted by the COVID-19 pandemic.

Mercedes Benz Has Atypical Competitor In India, Claims Company's Marketing Head

Mercedes Benz is considered as the market leader in luxury car segments, however, in India, the car manufacturer sales have taken a hit recently and the phenomenon has sparked an unusual debate over mutual funds. Recently, in an interview, the sales and marketing head of Mercedes Santosh Iyer said that the luxury car market was deeply impacted by the COVID-19 pandemic and people are looking at relatively safer investments.

He termed the systematic investment plans (SIPs) a competitor for the luxe car sellers adding that the average consumer is currently looking for a dip in the market to increase their investments in SIPs and as a result, luxury cars have lost their value as an asset.

"While the luxury car industry is growing at one of its fastest paces post-pandemic, actual sales are a far cry from potential and wealth that India carries," he said in an interview with news outlet TOI.

“The SIPs are our competitors. I tell my team if you are able to break that (SIP investment) cycle, then exponential growth is given,” Mr Iyer said.

"Disposable incomes into aspirational and premium products such as cars are not as widespread as they should be. While there are 15,000 people inquiring about luxury cars every month, the actual order size is about 1500 units. So, there are still 13,500 customers who desire to own a Mercedes-Benz, but postpone their purchase thinking that it's fine, maybe, I should continue (with) my SIP or maybe the next dip (in markets) is there," he added.

Meanwhile, this response from Mercedes' sales head has sparked a lot of conversations on social media. Grabbing the opportunity, to weigh in his pov, Nilesh Shah, Managing Director, Kotak AMC said that SIPs create financial freedom for investors to buy what they want.
He tweeted, "At ₹ 50,000 EMI, it is not possible to buy a luxury car. At ₹ 50,000 SIP for a reasonable time, it is possible to buy a luxury car. SIPs."

Furthermore, according to data from the Association of Mutual Funds in India (AMFI), investments through SIPs stood at ₹ 13,040 crores in October compared to ₹ 12,976.34 crores in September.

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